Specialty metal and metal-based chemicals outfit Metal-Tech said its Uzbekistan joint venture has been declared bankrupt.

It said the Economic Court in Tashkent made the decision on Uzmetal Technology, in which it has a 50% interest, after it failed to pay a dividend to a shareholder for 2005.

In addition, the Appellate court has rejected the company’s claims with respect to cancelling a previous ruling and does not accept that the firm is a creditor of UTL, while accepting that the Uzbek shareholders are creditors of UTL.

Metal-Tech said it intends to appeal against the decision as its Uzbek lawyers say the court decision was delivered in contradiction to local rules of procedures and substance.

"We are disappointed with the Uzbek court’s decision and are determined to pursue our appeal and defend our position vigorously," said boss Ran Maimon.

"The company’s ability to satisfy current demand for its products from its present production sites, its technical expertise in the engineering and production of quality specialty metals and its growth strategy give the board confidence that its revenue target set for 2007 will be reached," he added.